Latin American energy storage capacity projected to reach 34 GW by 2035

Wood Mackenzie has significantly raised its forecast for energy storage capacity in Latin America, projecting it will grow from 2.5 GW in 2025 to 34 GW by 2035. This represents a 13.6-fold increase over the decade.

The growth is driven by structural factors including grid congestion and the increasing frequency of renewable energy curtailment. Chile currently leads the region in the deployment of battery energy storage systems (BESS), particularly through investments in long-duration systems to manage solar energy surpluses. Other countries scaling up include Mexico, Brazil, Argentina, and the Dominican Republic.

Despite the rapid growth in the project pipeline, analysts warn that deployment could stall without comprehensive regulatory frameworks and clear remuneration mechanisms. In northern Chile, there is a noted risk of price cannibalization, where increasing battery capacity could erode revenues from energy arbitrage.